Publications
Publications
- January 2022
- HBS Case Collection
The Florange Law: Encouraging Long-Termism in Equity Markets?
By: Charles C.Y. Wang and Tonia Labruyere
Abstract
This note provides background information on a French law (“the Florange law”) passed in 2014 that the French government said would encourage long-term shareholdings. The note describes the law, what led to it, the reactions it evoked, and similar initiatives in other European countries. The note also provides examples of what the application of the Florange law looked like in the real world and how companies and their shareholders were impacted by it.
Keywords
Equity; Financial Markets; Investment Activism; Institutional Investing; Corporate Governance; Policy; Rights; Laws and Statutes; Business and Government Relations; Accounting Industry; France
Citation
Wang, Charles C.Y., and Tonia Labruyere. "The Florange Law: Encouraging Long-Termism in Equity Markets?" Harvard Business School Background Note 122-065, January 2022.